UPDATE 2-Belgacom outlook, dividend disappoint investors

* 9-months EBITDA 1.488 bln euros vs 1.479 bln euro forecast

* Repeats outlook despite 9-month revenue rise

* Interim dividend of 0.4 euros, from 0.5 euros in 2008

* Share buyback in 2009 unlikely

* Shares fall to seven-week low

(Adds details after conference call, share price, analyst comment)

By Antonia van de Velde

BRUSSELS, Oct 30 (Reuters) - Belgian telecom operator Belgacom (BCOM.BR) on Friday kept its full-year outlook on hold despite rising revenues and said it would pay a reduced interim dividend, disappointing investors.

Belgacom shares fell as much as 3.9 percent to 25.84 euros, a seven-week low, against a 1.3 percent drop for the DJ Stoxx European telecoms index .SXKP.

Belgacom repeated it expected revenues to drop by around 1 percent this year and that its EBITDA margin would be 32-33 percent in 2009, from 33.3 percent in 2008. [ID:nLU690761]

This was despite revenues rising by 1 percent in the first nine months. The former state monopoly said growing revenues for TV and data compensated for the decline in income from mobile and fixed-line telephone services.

The group will pay out a gross interim dividend of 0.40 euros per share for a total amount of 128 million euros. It paid out 0.50 euros last year.

The lower-than-expected payout was "a minor disappointment" and the forecast did not inspire great confidence, Bank Degroof analyst Siddy Jobe said in a note to clients.

"Belgacom reported an upbeat set of third-quarter results which would have prompted us to increase our forecast, but the fact that the company is maintaining its full-year guidance makes us more cautious to do so," he said.

Chief Executive Didier Bellens said the group wanted to send a signal to its main shareholder, the Belgian state, that it wanted regulatory issues to be resolved as soon as possible.

"We cannot continue to pay subsidies to our competitors ... and we cannot continue to pay big dividends to our shareholders," Bellens told a conference call.

The Belgian regulator's decision to cut mobile termination rates, the regulated fees operators charge for handling each other's calls, has hit Belgacom's earnings.

Belgacom wants the regulator to abolish the difference in mobile termination rates set for the incumbent operator -- Belgacom -- and those for its competitors.

Chief Financial Officer Ray Stewart said investors, who had been looking out for news on a potential share buyback this year, should not count on such a move this year.

"I think the shareholder return in the second half of this year will be via the dividend," he said.

Belgacom's earnings were boosted by the acquisition of Luxembourg mobile operator Tango and Internet provider Scarlet.

The group's enterprise business unit, which sells IT services to businesses, suffered from divestments and the economic slowdown.

Many of the group's business customers have introduced travel bans and reduced their mobile usage, particularly abroad, eating into Belgacom's earnings.

Overall earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 2 percent to 1.488 billion euros ($2.19 billion), against the average forecast of 1.479 million euros in a Reuters poll of 13 analysts. [ID:nLR409730]

It also repeated that capital expenditure would be between 10 and 11 percent of group revenues this year, against 11 percent last year.

Belgacom competitor Telenet (TNET.BR) raised its full-year outlook on Thursday after strong third-quarter results. [ID:nBRQ007569] ($1=.6785 Euro) (Reporting by Antonia van de Velde; editing by Simon Jessop and Jon Loades-Carter)